Acquisition Ecosystem
The deal ecosystem requires multidisciplinary skills and knowledge and participating functions. Our M&A advisory team provide ‘must-have’ financial, deal and end-to-end project management expertise to support you across the entire acquisition process or support your M&A team with investment banking resource.
The deal ecosystem requires multidisciplinary skills and knowledge and participating functions. Our M&A advisory team provide ‘must-have’ financial, deal and end-to-end project management expertise to support you across the entire acquisition process or support your M&A team with investment banking resource.
Not all transactions are equal
Danescor’s leading edge software enables management of large funnels identifying best fit convertible targets
Danescor’s end-to-end M&A support is geared towards helping clients identify and acquire best-fit companies.
Danescor’s acquisition strategy
Leverages software, proprietary data, and services to identify & access superior market data
Applies advanced data extraction & query technologies to develop the ideal initial M&A pipeline
Utilizes bleeding-edge transaction management software & resources to prioritize and advance top-tier targets efficiently
Enable clients to maximize resources to realize their top-quartile M&A transactions
Strategic networks
- Market leading intelligence for fast, efficient target identification
- Access proprietary real-time market information leveraging key data points across thousands of companies and transactions.
- Seamless project data integration incorporating dynamic market updates together with extensive access to Danescor’s Knowledge & Resource Centre.
Danescor adopts a structured methodology to
ensure clients acquire targets which are a 9+/10
which deliver top quartile ROIs
Frequently asked questions
How do I decide if I should acquire?
Clearly identify how you can create value from acquiring with a solid rationale to support 2+2=5 or more. Having established the strategic logic that supports an acquisition you need to confirm that the assets exist in a meaningful number and be confident you have the financial resources necessary to execute the transaction. Are you likely to be in a competitive situation with other
buyers? If so how do you differentiate yourself apart from being the highest bidder offering a higher price? Ask yourself, how can you best appeal to the vendor? Clearly identify how
you willcan create value from acquiring with a solid rationale to support synergy realization.
What are common mistakes made by companies looking to acquire?
- Lack of buyer appeal: Having decided to acquire they think any company considering a sale should be happy to engage and sell to them: Selling a company is a sensitive process and most sellers want the company to go to a good home. The seller needs be convinced that there is clear business logic for the transaction, the acquiror has the funds to complete the transaction and if possible has a track record of successfully completing acquisitions.
- Contacting Sell-side Advisors: Reaching out to M&A advisers they know to inform them they are open to acquisitions and asking them to include them on their buyer lists for any suitable sale processes they are running: It is hard to appreciate but this is likely to be very ineffectual, and it is questionable whether the adviser even makes a note of your interest! The market for sell-side advisors is incredibly fragmented which means even the very best advisors have an insignificant market share — making this approach highly inefficient. Even if you do get shown opportunities you are likely to be one of 80+ buyers looking at the opportunity, translating to an extremely low conversion rate and more wasted resources. Given more than 95% of M&A advisors only do sell-side transactions and they typically have an insignificant market share, their actual knowledge of the buyer community is severely limited. This means they are ultimately a “transaction house” that just runs processes to get deals done. They want to get the business sold and don’t care too much if it is the best buyer or not. It’s better for them to get the business sold in six months or less rather than spend an additional three months trying to find a buyer who will pay 10% more.
- I am already talking to a couple of prospects and think I will get one of those over the line: A classic example of “you don’t know what you don’t know”. In order to drive the most return from an acquisition you need to acquire a 9/10 prospect so your business can achieve an ROI of >80% rather than settling for 20%-30% or less from acquiring a 6/10 or 7/10. Acquiring each “best fit” company requires you to look at circa 100-140 companies, and you need a process that is fit for purpose to achieve this.
We have decided that acquisitions are a core component of our growth plans so what’s wrong with hiring an in-house M&A professional?
More than 95% of M&A advisors solely focus on sale processes and because the market is so fragmented and competitive they have a minute market share which means they just run transactional sale processes. Further only 25% of all M&A transactions are the result of a formal banker-led sale process, which means 75% are the result of off-market processes. As a consequence, there is a skill-set mismatch with what you are trying to achieve, so while it is understandable, you also need to recognize and acknowledge the shortcomings of this approach.
If I have hired an in-house M&A professional why is that not enough?
You want to ensure that you leverage this investment to the full, which requires focusing his time on the most value-add activities and partnering internally and externally to cover the other
